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Just about every federal investor knows that the super-safe, never-has-a-bad day Treasury securities G Fund is the place to be when times are tough, Senior Correspondent Mike Causey says. But what happens if Uncle Sam loses the ability to borrow in order to pay off debts? Where should G Fund investors go?

But I'm not sure if my G Fund is fully protected from loss when the Debt Limit crisis hits the fan. The dysfunction in DC has reached new levels. And the lack of compromise appears to be heading towards constitutional crisis levels. Pretty sure we'll be collateral damage.

It wasn't safe in Argentina in 2001 and it isn't safe here now. The bond bubble will pop and the U.S. dollar will no longer be the world's reserve currency. Why would so many countries want to continue to import inflation? They won't. The Fed keeps giving the banks billions every month. Why?
It would have been cheaper to give each American one million dollars (about 310 million) than to give the banks the TRILLIONS they've received so far.

Using your math, $1 million times 310 million people = $310 trillion. That's almost 100 times more than what the US govt spends per year. The TARP bailout of banks was $750 billion and most of that has been paid back. Maybe you're thinking about the $85 billion per month the Federal Reserve is printing to keep the home mortgage market afloat. That has more to do with keeping Fannie Mae and Feddie Mac on life support than with enriching banks.

In 2008, I had to use the G fund to save my finances but I did not move until 4 weeks of losses. Once the C, S and I funds started an upward trend for 3-4 weeks, I conservatively put 20 percent and then increased to about 50 percent with 30 percent. The European meltdown in 2011 was so quick this tactic failed and I lost 3 percent of balance, but I hung in there and now things are back up and then some. Inflation is reported at 3 to 4 percent per year, but the officials leave out key factors like food and gas so I think its closer to 7 percent. I now have shifted to 40 percent G, 10 in F, 20 in C, 20 in S, and 10 in I. Mike's point about taking risk is necessary to get ahead of inflation.

Mike has never answered this. I'm guessing that possession is 9/10's, so they've got our money either way. Here's the other thing: What if Guvmint ever decided to claw back the match? They could give us our contributions but say they need they matching funds for an "emergency" like more helicopter fuel to shuttle vips between WH & Andrews.

Every once in awhile, whilst we are dealing with the grave and weighty matters of life, something appears to tickle one's sense of the absurd. Here is one such instance from Federal News Radio:
Life imitates art: Star Trek, The Next Generation had Locutus of Borg who left the race of the Borg. The Department of Homeland Security (DHS) has cyber official Locatis of DHS who has just left the DHS.
"Bravo for life's little ironies!!!"
Gary Trudeau - Doonesbury
http://www.federalnewsradio.com/473/3196775/DHS-cyber-official-Locatis-leaving-after-only-9-months-
Best,
Rodger